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Investing.com — Target Corporation (NYSE:TGT) stock fell 2% on Monday after Cowen analyst Oliver Chen trimmed the price target on the stock to $265 from 300.
While Chen kept an outperform rating on the shares, he said in a note to investors that he is cautious because of data suggesting e-commerce traffic at Target “meaningfully decelerated” in the fourth quarter, on a two-year basis, indicating downside risk to estimates.
Chen explained that traffic at Target on a two-year basis slowed sequentially by 35 points to +19.6% from +54.8% in Q3, supporting other cautious data points around the quarter.
However, over the longer-term, Cowen continues to favor Target as they “believe the retailer will be better positioned to work through inflationary challenges over the coming quarters, benefits from a more resilient consumer, balanced category mix, broad-based market share growth, and trades at a more modest valuation.”
Chen also told investors that traffic “modestly declined” at Walmart Inc (NYSE:WMT), while he also slashed Wayfair Inc ‘s (NYSE:W) price target after his review of their web traffic saw him cut his fourth quarter sales forecast by around 3%.
